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marginal cost of production is also zero. The revenues under the different scenarios are given below. - If only one small firm exists, its revenue
marginal cost of production is also zero. The revenues under the different scenarios are given below. - If only one small firm exists, its revenue is $80, the other earns zero. - If two small firms exist, each earns revenue of $70. - If only one large firm exists, its revenue is $200, the other earns zero. - If two large firms exist, each earns revenue of $90. - If one small and one large firm exist, the small firm earns $40, while the large one earns $160. Answer the following: a) How many pure strategies are available for firm 1? b) How many pure strategies are available for firm 2 ? c) What is the sum of the firms' profits in the subgame perfect equilibrium
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